06 October, 2009

25% of top BPO providers will vanquish in 3 years: Gartner

Gartner said that market exit, acquisitions, and the ascent of new vendors will rearrange the BPO provider landscape in the coming years, and enterprises should look for warning signs when evaluating BPO vendors to mitigate risk. As providers are exposed to the economic crisis, loss-making contracts, and an inability to adapt to standardized delivery models, many will struggle to survive in their current form-said Robert H. Brown, research vice president at Gartner.

Cancellation rates among Gartner’s annual BPO buyer survey in 2008 rose sharply from the 2007 data. Therefore, Gartner advises buyers to build exit strategies into contracts and develop contingencies for contract termination, especially before signing the deal. India's export of software and services in the year ended March 31, 2009 is estimated to have grown 16-17 percent to about $47 billion, according to the lobby group National Association of Software and Service Companies (NASSCOM).